Global gold prices dipped below the $4,000 per ounce mark during the trading session on October 27th, as easing tensions in the U.S.-China trade dispute reduced demand for safe-haven assets. Investors are now closely monitoring the U.S. Federal Reserve’s monetary policy meeting scheduled for this week.
Specifically, spot gold prices fell by 2.6%, reaching $4,005.11 per ounce at 10:13 a.m. New York time (approximately 9:15 p.m. Vietnam time), after briefly dropping below the $4,000 threshold. U.S. gold futures for December delivery also declined by 2.9%, settling at $4,019 per ounce.
According to Reuters, Jeffrey Christian, CEO of CPM Group, noted that beyond technical pressures, gold is also influenced by a more positive market sentiment as U.S.-China trade tensions ease. “This de-escalation has prompted a price correction after gold surged from $3,800 to $4,400 in the first three weeks of October,” he explained.
Earlier, gold reached an all-time high of $4,381.21 per ounce on October 20th, but subsequently fell by 3.2% in the following week as the world’s two largest economies signaled concessions. Over the weekend, negotiators from both countries reached a temporary agreement to delay U.S. tariff increases and China’s restrictions on rare earth exports.
U.S. President Donald Trump and Chinese President Xi Jinping are expected to meet on October 31st to further discuss the trade agreement.
In other developments, investors are nearly certain (with a 97% probability) that the Fed will cut interest rates by 0.25 percentage points during its policy meeting on October 29th–30th.
As a non-yielding asset, gold typically benefits from low-interest-rate environments. However, following its recent sharp rise, some experts are adopting a cautious outlook on the precious metal’s upward trajectory.
While many investors believe gold could soon approach $5,000 per ounce, analysts at Capital Economics recently revised their forecast, predicting that gold prices may fall to $3,500 per ounce by the end of 2026.
Contrasting Free Market Exchange Rates: What to Expect by Year-End?
The US dollar’s value has skyrocketed in the free market recently, sparking widespread concern despite predictions of a positive exchange rate outlook by year-end.
Gold and Silver Poised for Another Dip Before Stabilizing
According to an independent metals trader, price movements indicate that gold, and particularly silver, require one more pullback before stabilizing.
Gold Prices Plummet by 5.5 Million VND per Tael in the Past Week, as of October 26th
Domestic gold prices surged at the beginning of the week, reaching a record high of over 160 million VND per tael during the October 21 trading session. However, prices sharply declined in the subsequent sessions.
October 23: Gold Bars and Rings Surge by 900,000 VND per Tael
Global gold prices rebounded following a sharp decline during the sessions on October 21st and 22nd, with domestic gold prices also trending upward compared to yesterday’s closing levels.
Caution Advised: Riding the Waves of Gold and Silver Trading
Gold prices are soaring, but experts caution that this surge carries significant risks, especially for small investors without a solid financial foundation. Proceed with caution.
